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(Kitco News) - The gold market is modestly higher and hit a three-week high in early U.S. trading Wednesday. Prices pushed above unchanged after the release of prepared remarks from Federal Reserve Chairman Ben Bernanke, who will speak before the U.S. House of Representatives later in the morning. The Fed chief said its bond-buying program is “by no means on a preset course.” The U.S. dollar index down-ticked in the wake of the release of the prepared text, which in turn helped to lift gold and silver prices. August gold was last up $4.20 at $1,294.90 an ounce. Spot gold was last quoted up $4.20 at $1,296.25. September Comex silver last traded up $0.09 at $20.03 an ounce.

Bernanke reiterated the Fed remains flexible in its monetary policy. He also said if economic conditions deteriorate again the central bank could ramp up its monthly bond-buying program, also called quantitative easing. The market place deemed Bernanke’s remarks to be on the dovish side of monetary policy, but they were not out of line with what he has stated just recently. Bernanke’s actual testimony before the U.S. House begins at 10:00 a.m. eastern time. His question-and-answer session with lawmakers could provide more market-sensitive information for traders and investors.

European stocks were modestly lower Wednesday, on ideas Bernanke’s remarks Wednesday will not be bullish for equities. Asian stocks were mixed in subdued trading Wednesday, ahead of the Bernanke testimony to U.S. lawmakers.

Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, new residential construction, the weekly DOE liquid energy stocks report, and the Federal Reserve’s beige book.

The London A.M. gold fix is $1,284.25 versus the previous London P.M. fixing of $1,291.50.

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Technically, the gold market bears remain in overall near-term technical control. However, the bulls have gained some upside near-term technical momentum recently. The bulls still have much work to do to suggest a near-term price uptrend can be sustained. The gold bulls’ next upside near-term price objective is to produce a close above technical resistance at $1,300.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at last week’s low of $1,214.40. First resistance is seen at $1,300.00 and then at $1,310.00. First support is seen at the overnight low of $1,282.20 and then at this week’s low of $1,272.50.

Silver bears have the overall near-term technical advantage but bulls have gained a bit of upside momentum recently. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $21.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at last week’s low of $19.67. First resistance is seen at last week’s high of $20.25 and then at $20.50. support is seen at this week’s low of $19.54 and then at $19.43.

Read the latest news in gold and precious metals markets at Kitco News.

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